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It took some tough decisions, but British Columbia’s 2013 budget will be balanced. Our government’s commitment to the people of this province that we will not spend more money than government receives will be honoured.

Starting with this budget, British Columbians will again be able to look at their children and grandchildren and know that the services we rely upon today are being paid for by us, and not a future generation.

We’re delivering a balanced budget — not just in 2013, but for all three years of our new fiscal plan. At the same time, we’re investing in early childhood development and helping B.C. families save for their children’s future training and education.

Effective immediately, every family with a child under seven who meets some basic residency rules will qualify for a one-time B.C. Training and Education Savings Grant. Once the child turns six and enters an elementary school program, we will transfer $1,200 to the family to help with the cost of studies or skills training after high school.

B.C.’s Families First Early Years Strategy will invest $76 million over three years to support the creation of new child care spaces and improve the quality of child care and early years services.

In addition, a new early childhood tax benefit will provide $146 million to approximately 180,000 families with children under six years old. Families with young children can receive up to $55 a month for each child. About 90 per cent of B.C. families with young children are expected to be eligible.

The B.C. government’s balanced budget plan will limit spending growth but spending on health and education services will continue to rise.

B.C. continues to meet key health outcomes that lead the country while maintaining the second lowest rate of health spending per capita among provinces. Savings and efficiencies in health spending will keep the growth of the Health Ministry budget to an annual average of 2.5 per cent — adding about $2.4 billion over the fiscal plan to reach $17.4 billion in 2015-16.

The education budget will continue to rise over the three-year fiscal plan to $5.4 billion, and we’re investing $210 million over three years to support the learning improvement fund. These modest investments that support your priorities are possible because of the difficult choices this government made to balance the budget and keep it balanced.

How are we taking the budget from a deficit projected at $1.2 billion for 2012 to a surplus projected at $197 million in 2013, with forecasts of greater surpluses over the following years? There are four key steps:

Our economy continues to grow, though modestly, so we need to do more to meet our targets.

Over the term of our three-year fiscal plan, revenues are projected to grow by an average of three per cent a year. Spending is projected to grow at roughly half that rate – by an average of 1.5 per cent a year.

Spending reviews have found savings of almost $1.1 billion over the fiscal plan period. About half of these savings are helping achieve the balanced budget, while the remaining half is being invested to improve family affordability, and support jobs and economic growth.

We are introducing some targeted tax measures, asking people who have a little more to contribute a little more. Starting in January 2014, we’re going to temporarily increase the personal income tax rate on income above $150,000 a year. A person earning $160,000 will pay a bit more these two years, about $200 more. We are also asking businesses to help, consistent with the plan we put forward a year ago, by increasing the general corporate income tax rate by one percentage point effective April 1. The small business corporate income tax rate will remain unchanged.

We can look forward to a future of growth, opportunity and prosperity. And it will be a future where parents have more support to care for their children. That is the future we are working toward. And it all starts with a balanced budget. Promise made, promise delivered.

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